Austin Financial recently announced that its net income increased sharply from the previous year, yet its net cash provided from operations declined. Which of the following could explain this performance? Select one: a. The company's cost of goods sold increased. o b. The company's interest expense increased. O C. The company's expenditures on fixed assets declined. O d. The company's dividend payment to common stockholders declined. O e. The company's depreciation expense declined. Last year Jandik Corp. had $270,000 of assets (which is equal to its total invested capital), $18,750 of net income, and a debt-to-total-capital ratio of 37%. Now suppose the new CFO convinces the president to increase the debt-to-total-capital ratio to 48%. Sales, total assets and total invested capital will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE? Do not round your intermediate calculations. Select one: a. 2.77% O . b. 1.87% O C. 2.75% O d. 2.15% O e. 2.33% Below is the common equity section (in millions) of Timeless Technology's last two year-end balance sheets: 2019 2018 2,000 1,000 Common stock 2.000 2.340 Retained earnings $4,000 $3,340 Total common equity The firm has never paid a dividend to its common stockholders. Which of the following statements i CORRECT? Select one: a. The company has more equity than debt on its balance sheet. Ob. The firm had positive net income in both 2018 and 2019, but its net income in 2019 was lower than it was in 2018. C. The market price of the firm's stock doubled in 2019. d. The company's net income in 2019 was higher than in 2018. e. The firm issued common stock in 2019. Companies E and Peach reported the same earnings per share (EPS), but Company E's stock trades at a higher price. Which of the following statements is CORRECT? Select one: a. Company E probably has fewer growth opportunities. O b. Company E must have a higher market-to-book ratio. C. Company E must pay a lower dividend. O d. Company E trades at a higher P/E ratio. O e. Company E is probably judged by investors to be riskier